STATE OF BIHAR Vs. LUCKY PAPER INDUSTRIES

JUDGEMENT

(1.) CHANDRAMAULI Kr. Prasad and Jayanandan Singh, JJ. In exercise of the power conferred under Section 48(3) of the Bihar Finance Act, upon receipt of an application under Clause (b) of Sub-section (2) of Section 48 of the Act, this Court by order dated 28.8.1992 required the Commercial Taxes Tribunal Bihar, Patna to state a case and refer the following question of law for opinion: Whether relying on the judgment of Honourable Supreme Court reported in M/S Good year India Ltd. and others (1990) 76 S.T.C. 71, the Tribunal was right Page 1146 that since Section (9)(i)(b) of Haryana General Sales Tax Act, 1973 has been declared ultra vires, the levy of tax on estimated value of raw materials under Section 4 of the Act, the Act though still good law, is bad in law?

(2.) IN the light of the aforesaid order the Commercial Taxes Tribunal, Bihar, hereinafter referred to as the Tribunal, has submitted statement of the case. Assessee is a registered dealer under the Bihar Finance Act, 1981 and during the year 1983-84 it was engaged in the manufacture and sale of paper Boards. During the year 1983-84 it filed return on a gross turnover of Rs. 5,46,465.82. This was accepted by the Assessing Officer. Assessee claimed a sum of Rs. 3,61,802.82 as sale outside the State. No account of purchase of raw materials utilized in the manufacture of paper boards and evidence in regard to the payment of tax thereon was filed. The Assessing Officer estimated their value at Rs. 3,10,000/- and taxed it under Section 4 of the Bihar Finance Act, hereinafter referred to as the Act, on an assumption that the tax was not paid. Aggrieved by the same, assessee filed appeal which was dismissed by order dated 28th September, 1989 by the Joint Commissioner of Commercial Taxes (Appeals). Attempt made by it to get the said order reviewed also failed and the review petition was dismissed. Thereafter the assessee filed revision application before the Tribunal which upheld his contention by order dated 18.7.1990. While doing so it observed as follows: IN view of this decision, the levy of tax on the estimated value of raw materials is not maintainable in law. It is accordingly set aside. IN connection with the above issue, other points were also raised and argued. But since, the application succeeds in view of the decision of the Supreme Court, it is not necessary to enter into the merit of the other points which are connected with the levy of tax on the purchase value of raw materials.

(3.) THE matter is now remitted back to the Tribunal who shall now proceed to hear and decide the matter afresh in accordance with law bearing in mind the observation aforesaid.